1,500 David, Inc. December 31, 2017 Unadjusted Trial balance Cash 100,000 Accounts Receivable 65,000 Allowance for Doubtful Accounts Short Term Note Receivable 40,000 Interest Receivable 0 Supplies 5,000 Prepaid Insurance 48,000 Inventory 12,000 Vehicle 16,000 Equipment 75,000 Accumulated Depreciation Accounts Payable Unearned Revenue Wages Payable Long-Term Notes Payable Common Stock Retained Earnings (1/1/2017) Dividends 3,000 Sales Sales Returns & Allowances 7,000 Sales Discounts 3,000 Cost of Goods Sold 46,000 Delivery Expense 5,000 Depreciation Expense 16,000 Bad Debt Expense 0 Rent Expense 98,000 Insurance Expense 40,000 Wages Expense 195,000 Supplies Expense 15,500 Interest Revenue Loss on Disposal 0 Interest Expense 6,500 Income Tax Expense 36,000 Total 832,000 42,000 53,000 14,000 2,000 70,000 106,000 2,500 541,000 0 832,000 Part 1a: Prepare adjusting journal entries using the unadjusted trial balance on the previous page and the information provided below. Use only the account names provided on the previous page (do not create any new account names). 1. 2. The company received a 6 month, 12% interest note short-term note for the amount listed on the unadjusted trial balance on Oct. 1, 2017. All interest and principal will be paid back at the end of the 6 months. Write the adjusting journal entry required for its financial statements as of Dec. 31, 2017. 3. Uncollectable Accounts Receivables of $1,600 need to be written off for the year ended 2017. 4. Management estimates that of the remaining accounts receivable balance, $2,000 will be uncollectible. Record the adjustment based on this information. Hint: Use the AFDA balance AFTER the above write off during 2017. Use an AFDA T-account! 5. A piece of equipment was retired on Dec. 31, 2017. The equipment originally cost $34,000 and has related A/D of $24,000 as of Jan. 1, 2017. Additional depreciation of $3,000 needs to be recorded on this piece of equipment at Dec. 31, 2017. Update the depreciation below (#5). Then record the retirement (#6). 6. Record the retirement of the equipment (from #5) including the gain or loss